Trade Development

Authority of Pakistan

A Report on

PETROLEUM

Prepared By: Masroor Ahmed Korai (Product Officer)

Supervised By: Abubakar Bullo (Director)
Checked By: Athar Jamal Abro (Director General MMD)

Minerals & Metals Division

Abbreviation
POL Pakistan oil field LTD

BP British Petroleum

BOPD barrels of oil per day

PARCO Pak-Arab Refinery Limited

ARL Attock Refinery Limited

PRL Pakistan Refinery limited

DRL Dhodak Refinery Limited

LDO Light Diesel oil

LSDO Low speed diesel oil

CNG Compressed natural gas

JP Jet propellant (jet Fuel)

MS Motor Spirit

HOBC High octane blending component

SKO Superior kerosene oil

FO Furnace oil

TCF Trillion cubic feets

CFT Cubic Feet
TOE Tones of Oil Equivalent
BC Billion Cubic Feet
BD Barrels per Day
 Table of Contents

Contents: Page No.

1.Back Ground 3
2.Introduction 5
3.Composition 7
4.Specification 9
5.Uses of Petroleum 11
6.Petroleum Reserve in Pakistan 12
7.Pakistan oil Sector Data and Share of Government 13
8.Drilling Exploring/Development Wells in Pakistan 14
9.Long Term Petroleum Projection Pakistan 15
10.Pakistan’s Ranking in world Petroleum Production 16
11.Top 10 Largest world oil Companies by reserves and Production 17
12.Objectives Of Petroleum 18
13.Petroleum Export Markets Increase Trend 2010-11 19
14.Petroleum Export Markets Decrease Trend 2010-11 20
15.World Top Ten Petroleum Exporters 2010 21
16.World Top Ten Petroleum Importers 2010 23
17. Asia Top Ten Petroleum Exporters 2010 25
18. Asia Top Ten Petroleum Exporters 2010 27
19. Petroleum Products exported by Pakistan 2010 29
20.Major Refineries of Pakistan and Their Capacity/Proposed 30
Advisory Committee on Petroleum
21.Top oil Consuming Countries of the World 31
22.Top oil Producing Countries of the World 32
23.Top Oil Exporting Countries 34
24. World Largest Refineries with capacity and Location 35
25. Top Ten Asian Refining Companies 37
26. Process Plants Resume in Pakistan 38
27. New Location of Oil Reserves in Pakistan 40

1
28. Exploration and Development by OGDC 41
29.Pakistan’s Top Petroleum Products Exporters 42
30.Recommendation/Suggetion and action Plane 44
31.Conclusion 46
32. Glossary of the Terms of the Petroleum 47
32. References 55

2
 Background

The modern histroy of petroleum began in the 19th century with the refining of
kerosene from crude oil. Although the Russian Dubinin brothers had purified
kerosene directly from petroleum in their factory in 1823, and the process of
refining kerosene from coal was discovered by Nova Scotian Abraham Pineo
Gesner in 1846, it was only after Ignacyu kasiewicz had improved Gesner's
method to develop a means of refining kerosene from the more readily available
"rock oil" ("petr-oleum") seeps, in 1852, that the first rock oil mine was built in
Bóbrka, near Krosno in central European Galicia (Poland/Ukraine) in 1853. In
1854, Benjamin Silliman, a science professor at Yale University in New Haven
was the first person to fractionate petroleum by distillation. These discoveries
rapidly spread around the world, and Meerzoeff built the first modern Russian
refinery in the mature oil fields at Baku in 1861. At that time Baku produced about
90% of the world's oil.

The world's first commercial oil well was drilled in Poland in 1853, and the
second in nearby Romania in 1857. At around the same time the world's first, but
small, oil refineries were opened at Jasło, in Poland, with a larger one being
opened at Ploiești, in Romania, shortly after. Romania is the first country in the
world to have its crude oil output officially recorded in international statistics,
namely 275 tonnes By the end of the 19th century the Russian
Empire,particularly the Branobel company in Azerbaijan, had taken the lead in
production.

The first oil well in North America was in Oil Springs, Ontario, Canada in
1858,dug by James Miller Williams. The US petroleum industry began with Edwin
Drake's drilling of a 69-foot (21 m) oil well in 1859, on Oil Creek near
Titusville,Pennsylvania, for the Seneca Oil Company (originally yielding 25
barrels per day (4.0 m3/d), by the end of the year output was at the rate of 15
barrels per day (2.4 m3/d)). The industry grew through the 1800s, driven by the

3
demand for kerosene and oil lamps. It became a major national concern in the
early part of the 20th century; the introduction of the internal combustion engine
provided a demand that has largely sustained the industry to this day. Early
"local" finds like those in Pennsylvania and Ontario were quickly outpaced by
demand, leading to "oil booms" in Ohio, Texas, Oklahoma, and California.

By 1910, significant oil fields had been discovered in Canada (specifically, in the
province of Alberta), the Dutch East Indies (1885, in Sumatra), Persia (1908, in
Masjed Soleiman), Peru (1863, in Zorritos District), Venezuela, and Mexico, and
were being developed at an industrial level.

Access to oil was and still is a major factor in several military conflicts of the
twentieth century, including World War II, during which oil facilities were a major
strategic asset and were extensively bombed.

Until the mid-1950s coal was still the world's foremost fuel, but after this time oil
quickly took over. Later, following the 1973 and 1979 energy crises, there was
significant media coverage on the subject of oil supply levels. This brought to
light the concern that oil is a limited resource that will eventually run out, at least
as an economically viable energy source. Although at the time the most common
and popular predictions were quite dire, a period of increased production and
reduced demand in the following years caused an oil glut in the 1980s. This was
not to last, however, and by the first decade of the 21st century discussions
about peak oil had returned to the news.

Today, about 90% of vehicular fuel needs are met by oil. Petroleum also makes
up 40% of total energy consumption in the United States, but is responsible for
only 2% of electricity generation. Petroleum's worth as a portable, dense energy
source powering the vast majority of vehicles and as the base of many industrial
chemicals makes it one of the world's most important commodities.

4
 Introduction

Petroleum (L.petroleum, from Greek: petra (rock) + Latin: oleum (oil) or crude oil
is a naturally occurring, flammable liquid consisting of a complex mixture of
hydrocarbons of various molecular weights and other liquid organic
compounds,that are found in geologic formations beneath the Earth's surface.
Petroleum is recovered mostly through oil drilling. This latter stage comes after
the studies of structural geology (at the reservoir scale), sedimentary basin
analysis, reservoir characterization (mainly in terms of porosity and permeable
structures). It is refined and separated, most easily by boiling point, into a large
number of consumer products, from petrol and kerosene to asphalt and chemical
reagents used to make plastics and pharmaceuticals. Petroleum is used in
manufacturing a wide variety of materials.

Pakistan’s economy is growing at a very steady rate and this growth is

demanding higher energy consumption and thus putting a huge pressure over
countries limited energy recourses. Energy sector in Pakistan comprises
petroleum, gas, power and coal. Due to the limited reserves of oil and gas with in
the country, Pakistan has to import large quantity of oil and oil related products to
satisfy the growing domestic oil demand.

Pakistan has long been considered a petroleum province; the first well was
drilled in 1866 at Kundal in the upper region of Indus Vally. Shallow wells were
drilled in the following years, and from 1886, small scale production of oil started
in Khattan (Balochistan). In 1915, the first of a series of commercial oil
discoveries was made in the Potwar basin (Punjab). The first major gas
discovery (9.6 TCF) was made in the Central Indus basin by Pakistan Petroleum
Ltd. (majority shareholder was Burmah Oil) in 1952 at Sui (in Balochistan).

So far 728 exploratory wells have been drilled across the country, out of which a
total 219 remained successful. The rate in oil and gas exploration was ‘very high’
in Pakistan as compared to other discoveries at the international level. The
Exploration and Production (E&P) companies would be offered $4.08 per mmbtu
in as per 2009 petroleum policy, which was $3.65 per mmbtu in 2007 and $2.99

5
per mmbtu in 2001 petroleum policy. The country has about 45 rigs from which
the country's oil and gas demands are met. Local gas production is 4 billion cubic
feet per day (bcfd) and the oil production is 37,000 barrels per day (bpd) against
the demand of 9-10 bcfd of gas and 77,000 bpd of oil.

There are almost four major national oil companies currently involved in the
sector, namely Oil and Gas development corporation limited (OGDCL), Pakistan
petroleum limited (PPL), Pakistan state oil company limited (PSO) and Pakistan
oilfields limited (POL). All these four companies are joint ventures and
partnership between different international companies and some domestic firms.
These four listed companies have cumulative market capitalization of PKR 765
Billion and hold 22.5% weightage in KSE- 100 index. Major international oil
companies currently involved in the business in country are BP (UK), ENI (Italy)
OMV (Austria) and Orient petroleum (Canada).

Oil consumption of different energy products is dominated by Gasoline and Fuel

oil. In Pakistan transport sector in the biggest user of the petroleum products
which accounts about 48 percent followed by power generation which uses about
36 percent, and industrial sector which has a share of 12 percent while remaining
is shared by the residential sector.

6
 Composition of Petroleum
In its strictest sense, petroleum includes only crude oil, but in common usage it
includes all liquid, gaseous, and solid (e.g., paraffin) hydrocarbons. Under
surface pressure and temperature conditions, lighter hydrocarbons
methane,ethane, propane and butane occur as gases, while pentane and heavier
ones are in the form of liquids or solids. However, in an underground oil reservoir
the proportions of gas, liquid, and solid depend on subsurface conditions and on
the phase diagram of the petroleum mixture.

An oil well produces predominantly crude oil, with some natural gas dissolved in
it. Because the pressure is lower at the surface than underground, some of the
gas will come out of solution and be recovered (or burned) as associated gas or
solution gas. A gas well produces predominantly natural gas. However, because
the underground temperature and pressure are higher than at the surface, the
gas may contain heavier hydrocarbons such as pentane, hexane, and heptane in
the gaseous state. At surface conditions these will condense out of the gas to
form natural gas condensate, often shortened to condensate. Condensate
resembles petrol in appearance and is similar in composition to some volatile
light crude oils.

The proportion of light hydrocarbons in the petroleum mixture varies greatly

among different oil fields, ranging from as much as 97% by weight in the lighter
oils to as little as 50% in the heavier oils and bitumens.

The hydrocarbons in crude oil are mostly alkanes, cycloal kanes and various
aromatic hydrocarbons while the other organic compounds contain
nitrogen,oxygen and sulfur, and trace amounts of metals such as
iron,nickel,copper and vanadium. The exact molecular composition varies widely

7
from formation to formation but the proportion of chemical elements vary over
fairly narrow limits as follows.

Composition by Weight
Element Percentage
Carbon 83 to 87%
Hydrogen 10 to 14%
Nitrogen 0.1 to 2%
Oxygen 0.05 to 1.5%
Sulfur 0.05 to 6.0%
Metals < 0.1%

Four different types of hydrocarbon molecules appear in crude oil. The relative
percentage of each varies from oil to oil, determining the properties of each oil.

Composition by weight
Hydrocarbon Average Range
Paraffins 30% 15 to 60%
Naphthenes 49% 30 to 60%
Aromatics 15% 3 to 30%
Asphaltics 6% remainder

Crude oil varies greatly in appearance depending on its composition. It is usually

black or dark brown (although it may be yellowish, reddish, or even greenish). In
the reservoir it is usually found in association with natural gas, which being lighter
forms a gas cap over the petroleum, and saline water which, being heavier than
most forms of crude oil, generally sinks beneath it. Crude oil may also be found
in semi-solid form mixed with sand and water, as in the Athabasca oil sands in
Canada, where it is usually referred to as crude bitumen. In Canada, bitumen is
considered a sticky, black, tar-like form of crude oil which is so thick and heavy
that it must be heated or diluted before it will flow.
8
Specifications of Petroleum Products

HEAVY FUEL Oil / MAZUT M100 GOST 10585/75

Ash content, not more % 0,14
Mass fraction of sulphur, not more % 0,5
Temperature of the flash, not less °C 110 min
The temperature of solidification, not higher °C 25
Kinematics viscosity 118 max
Water content 0.5%
Mechanical impurities Lower than 0.1%
Acidity Lower than 5 mg KOH/ 100ml
Alkalinity nil
Gross Calorific Value Kcal/kg / KJ/kg min 9200/41300
Density at 15.0 deg. °C Kg/l 0.8900-0.9200
Hydrogen Sulfide Content (H2S) pom 0.5 max
Carbon Residual Lower than 7%
Vanadium (V) ppm 23
Aluminium (Al) ppm 5
Silikon (Si) ppm 12
Nickel (Ni) ppm 49
Asphaltenes m/m 3.6%
Destilation @4 mm Hg
Extracted to 760 mm Hg Initial Boiling Point deg. °C 216
5% recovered deg. °C 259
10% recovered deg. °C 310

SPECIFICATIONS SLCO Saudi Light Crude Oil

API Gravity 33.34
Sediment Content 0.1
ASTM Stabilized Gravity 34.5
Wax Wt. Percentage 9
Vanadium ppm V200 11.0
Gross Heating Value 19.23
Reid Vapor Pressure 2.0
Salt Content ppm NaCI 8
SulphurWt, Percentage ` 1.8 Max
Ash ppm 100.0
Comp Carbon Residue Wt. Percentage 3.1

9
SPECIFICATIONS JET FUEL COLONIAL GRADE 54

Density at 15˜ 0.8 / 0.83 g/ml

DIST_D86 / I.B.P. 159.8
DIST_D86 / 10% recovered 187.4
DIST_D86 / 20% recovered 194.8
DIST_D86 / 50% recovered 208.8
DIST_D86 / 90% recovered 232.7
DIST_D86 / F.B.P. 244.1
DIST_D86 / Residue 1.2 % vol
DIST_D86 / Loss 1.4 % vol
Saybolt Color 28
Appearance Clear & Bright
Flash Point 51.5
Copper Strip Corrosion 2h@100 Class 1
Acid number 0.004 mg KOH
Total Sulphur 0.12 % w/w
MercaptanSulphur 0.0005 % w/w
Existent Gum 1mg / 100 mI
FIA / Aromatics 16.5 % vol
Water Reaction : Interface Rating 1
Net Heat of Specific Energy 43.222 ml/kg
Freezing Point -43.5 °C
Kinematics Viscosity @ - 20 6.86 cSt
Smoke point 25 mm
Naphthalene’s 1.2 % vol
JFTOT / Change in pressure drop 1 mm HG
JFTOT / Filter Tube Deposit 1

10
 Common Uses of Petroleum

Why is Petrol Useful?

It makes the motor of your car run you to the store Answer Petrol is useful for two
reasons: it burns with a very hot flame, shence is useful as a fuel, and it is a very
good solvent. You're not supposed to wash auto parts in it because that is
evaporates.

What can Petrol is used for?

Gasoline is used, in various grades, to fuel automobiles, aircraft, boats, lawn-

care equipment, generators, and various other machines that utilize an internal
combustion engine.

What are the uses of Petrol?

uses of petrol are : vehicles to make electricity: this is done by: the petrol is burnt
and the heat goes to the boiler which makes the water boil then the steam from
that goes into the turbines which then makes the magnets turn which then
converts in to energy.

What are the uses of White Petrol?

White petrol, Parafin or as it is refered to in some places, Kerosine (kero) is

widely used as Jet fuel, Rocket fuel, and is a very popular Heating fuel.

How is Petrol used by us?

Petrol is used by us in Motor Car and Generators.

What was the original use of Petrol?

It was used for killing off Parasites Bed Bugs lice and for removing grease stains.

11
 Reserves of Petroleum in Pakistan

Reserves to production ration of Pakistan’s energy resources are describes

below. Depletion of oil and gas resources are expected to be with in 14 and 21
years respectively while Pakistan has huge quantity of low grade Coal which
contains high content of sulphur due to which it has to import Coal for
neighboring country while 16 percent of hydel power is yet to be realized So Oil
and Gas are the dominant sectors as far as energy resources are Concerned.
Their past, present and future will be discussed in detail here. Table gives
reserve to production ratio of countries energy resources

Energy Reserves of Pakistan

Source: Pakistan energy year book 2006-07 Million US$

Fuel Annual production Reserve to production Petroleum Reserve

ratio Size

Oil 23.94 Mbbl 14 326.678 M.barrel

43.83 Million TOE
Gas 1.40 Tcf 21 29.7891 TCF
(551.22 Million
TOE
Coal 4.59 M tons 678 186,008 MT

Hydro 16%

12
 Pakistan Oil Sector Over view
Million US $
Potential Discoveries Produced Up dated Refinery Crude Oil Crude oil Up to
Expected Potentials capacity Production Import,04- 30th
04-05 05 June Oil
&Gas
Wells
27 844 Millions 535 26.222 12.82 24.12 8.28 620
Billions Barrels 35 Millions Billion Millions Million Millions Explored
Barrels- Barrels Barrels Tons Barrel 18% Tons 82% 180
100% Year 97 of Demand of Discover
% Demand ed

Source: Ministry of Petroleum and natural resources Pakistan

Share of Government in Oil Sector

Name Business Direct & indirect Share

holding

Oil & Gas Development 100%

Co.
Pakistan Petroleum 93.45
Limited. Exploration & Production
Mari Gas co.ltd 40.005
Pakistan oil fields ltd.
11.00%

National Refinery Ltd. 55.00%

Attock Refinery Ltd. Oil Refining 26.00%

Pak Arab Refinery co. ltd. 60.00%

Pakistan State Oil co.Ltd. Oil Marketing and 55.22%
Distribution

Source: Oil Companies Advisory Committee Pakistan

13
Drilling Exploring & Appraisal /Development Wells
S.NO. Operator Well Name Concession/Lease Status
1. MGCL Halini-1 Karak Oil
2. PPL Bhit Shah X-1 Hala Temporarily
Suspended
3. OGDCL Zin-X-1 Zin Drilling in
Progress
4. BP Mulaki-1 E Khorewah Testing
5. OGDCL Jabbi-1 Kohat Drilling in
Progress
6. OGDCL Saand-1 Nim Due to Heavy
Rain
7. OGDCL Suleman-1 Khewari Drilling in
Progress
8. OGDCL Ajuwala-1 Fateh Jang Hole Cleaning
9. BP Kakejani-1 Khaskheli Due to Heavy
Rain
10. POL Dhulian Deep-1 Dhulian Drilling in
Progress
11. OMV Missri Bhambro-1 Miano-II Suspended
12. OMV Lundo-1 Gambat Drilling in
Progress
13. OGDCL Dhodak Deep Nashpa DST
14. OGDCL Nashpa-2 Nashpa DST
15. POL Domial-2 Ikhlas Hole Cleaning
16. OGDCL Nashpa-3 E Nashpa Drilling in
Progress
17. MOL Makori East-2 Tal Drilling in
Progress
18. Petronas Rehmat Mubarik Temporarily
Suspended
RIH 7” Liner

19. MOL Manzalai-9 Manzalai M RIH 7”

20. Eni Bhit-13 Bhit Gas
21. OPII Ratana-4 Ratana Drilling in
Progress
22. PPL Chachar-4 Chachar Under
Completion
23. OGDCL Rajian-6 Rajian Drilling in
Progress
24. OGDCL Uch-19 Uch Drilling in
Progress
25. OGDCL Qadirpur-43 Qadirpur Drilling in
Progress
26. OGDCL Uch-32 Uch Drilling in
Progress
27. BP Zaur-19 Zaur Drilling in
Progress

14
 Long Term Petroleum Product Projection Pakistan

Million US$

Product 2004-05 2008-09 2010-11 2013-14 2017-18

100 LL 2.5 2.5 2.5 2.5 2.5

JP-1 749.4 806.4 835.4 879.4 934.4

JP-4 150 150 150 150 150

MS 1125.7 1218.5 1267.8 1345.3 1456.2

HOBC 15 15 15 15 15

SKO 300 300 300 300 300

HSD 7297.2 8133.3 8628.6 9428.7 10612.1

LDO 275 275 275 275 275

FO 4993 5383 5492 5465 5545

T o t a l: 14907.8 16283.7 16956.3 17860.9 19290.2

Source: Oil Companies Advisory Committee Pakistan

15
 Pakistan’s Ranking in World Petroleum Production

World Pakistan’s Pakistan’s Pakistan’s

Production Production Ranking Share %

85.160 Million 0.062 Million Barrel 58 0.073

Barrel Per Day Per Day

Pakistan’s Ranking in World Petroleum Reserves

World Pakistan’s Pakistan’s Pakistan’s

Reserves Reserves Ranking Share %

1,349,417 341 Million Barrels 53 0.025

Million Barrels
(1.349 Trillion
Barrels)

Source: CIA World Fact Book

16
 Top 10 largest world oil companies by reserves and production

Total
Worldwide
Worldwide Reserves
Natural
Liquids in Oil Production
Rank Company Gas Company
Reserves Equivalent (106bbl/d)
Reserves
(109bbl) Barrels
(1012 ft3)
(109bbl)
Saudi
1 260 254 303 Saudi Aramco 11.0
Aramco
National
National Iranian Oil
2 Iranian Oil 138 948 300 4.0
Company
Company
Qatar Kuwait Petroleum
3 15 905 170 3.7
Petroleum Corporation
Iraq
National Iraq National Oil
4 116 120 134 2.7
Oil Company
Company
Petróleos
Petróleos de
5 de 99 171 129 2.6
Venezuela
Venezuela
Abu Dhabi
National Abu Dhabi National
6 92 199 126 2.6
Oil Oil Company
Company
Kuwait
7 Petroleum 102 56 111 PetróleosMexicanos 2.5
Corporation
Nigerian
Nigerian National
National
8 36 184 68 Petroleum 2.3
Petroleum
Corporation
Corporation
9 Libya NOC 41 50 50 Libya NOC 2.1
10 Sonatrach 12 159 39 Lukoil 1.9

Source: CIA Fact Book

17
 Objectives of Petroleum

Objectives are following:

1.To accelerate Exploration & Production activities in Pakistan with a view to

achieve maximum self sufficiency in energy by increasing oil and gas production.

2.To promote direct foreign investment in Pakistan by increasing the

competitiveness Of its terms of investment in the upstream sector.

3.To promote the involvement of Pakistani oil and gas companies in the countries
upstream investment opportunities.

4.To train the Pakistani professionals in Exploration & Production sector to

international standards and Create favorable conditions for their retaining within
the country.

5.To promote increased E&P activity in the onshore frontier areas by providing
Globally competitive incentives.

18
Petroleum Export Markets Increase Trend FY 2010-11

Source: FBS Value in US $ 000’

Country Increased July-June July-June
Trend 2010-11 2009-10 VAR.
AFGHANISTAN 859,464 592,884 266,580
U.A.E. 347,673 281,782 65,891
KOREA, REP. OF 22,943 11,506 11,437
CHINA 18,067 2,037 16,030
TURKEY 8,397 3,785 4,612
MALAYSIA 4,373 - 4,373
EGYPT(U.A.R.) 70 17 53
IRAN( ISLAMIC R.) 44 - 44
DJIBOUTI 25 19 6
SAUDI ARABIA 14 2 12
U.R.OF TANZANIA
4
CANADA
2

TOTAL 1,261,076 892,032 369,044

19
Petroleum Export Markets with Decreased Trends FY 2010-11

Source: FBS Value in US $ 000’

Country Decreased July-June July-June VAR.

Trend 2010-11 2009-10
INDIA 15,351 16,158 (807)
BANGLADESH 260 2,289 (2,029)
U.S.AMERICA 27 41 (14)
RUSSIAN FED. 6 41 (35)
KENYA - 1 (1)
SOUTH AFRICA - 25 (25)
NETHERLANDS - 83 (83)
OMAN - 8,451 (8,451)
JAPAN - 10,183 (10,183)
OTHER COUNTRIES 75,596 104,011 (28,415)

TOTAL 91,240 141,283 (50,043)

20
 World Top Ten Petroleum Exporters 2010

Source: ITC Value in Million US $

Sr. %age
# Country Value in 2010 Share
World 1,998,530.81 100.00

1 Russian Federation 246,878.67 12.35

2 Saudi Arabia 185,530.46 9.28

3 Norway 83,975.13 4.20

4 Canada 83,478.48 4.18

5 United Arab Emirates 76,773.62 3.84

6 Nigeria 75,945.29 3.80

7 United States of America 70,212.99 3.51

8 Netherlands 63,060.59 3.16

9 Iran (Islamic Republic of) 61,711.21 3.09

10 Singapore 56,684.49 2.84

21
 %age Share of World Top Ten Petroleum Exporters 2010

Source: ITC Value in Million US$

Iran (Islamic Singapore 2.84

Republic of) 3.09
Netherlands 3.16
Russian
United Federation 12.35
States of
America
3.51
Nigeria 3.8
Saudi Arabia 9.28

Canada 4.18
Norway 4.2

United Arab
Emirates 3.84

22
 World Top Ten Petroleum Importers 2010

Source: ITC Value in Million US $

Sr. %age
# Country Value in 2010 Share
World 1,998,530.81 100.00
Asia Aggregation 824,074.52 41.23
1 Saudi Arabia 185,530.46 9.28
2 United Arab Emirates 76,773.62 3.84
3 Iran (Islamic Republic of) 61,711.21 3.09
4 Singapore 56,684.49 2.84
5 Qatar 56,545.68 2.83
6 Kuwait 52,160.98 2.61
7 Iraq 43,257.06 2.16
8 Republic of Korea 32,499.74 1.63
9 Kazakhstan 31,558.88 1.58
10 Malaysia 31,475.04 1.57

23
%age Share of World Top Ten Petroleum Importers 2010

Source: ITC Value in Million US$

Kazakhstan 1.58
Republic of Malaysia 1.57
Korea 1.63

Iraq 2.16 Saudi Arabia 9.28

Kuwait 2.61
United Arab
Qatar 2.83
Emirates
Singapore 3.84
2.84

Iran (Islamic
Republic of) 3.09

24
 Asia Top Ten Petroleum Exporters 2010

Source: ITC Value in Million US$

Sr. %age
Country Value in 2010
# Share
World 2,112,303.03 100.00

Asia Aggregation 777,550.45 36.81

1 Japan 174,268.26 8.25

2 China 169,998.07 8.05

3 Republic of Korea 109,474.86 5.18

4 Singapore 81,099.76 3.84

5 Chinese Taipei 44,772.37 2.12

6 Thailand 30,152.01 1.43

7 Indonesia 27,491.56 1.30

8 Turkey 23,403.90 1.11

9 India 18,901.01 0.89

10 Hong Kong, China 15,738.46 0.75

25
%age Share of Asia Top Ten Petroleum Exporters 2010

Source: ITC Value in Million US $

India 0.89
Hong Kong,
Turkey 1.11 China 0.75
Indonesia 1.3
Thailand 1.43
Chinese Japan 8.25
Taipei 2.12

Singapore 3.84

China 8.05
Republic of Korea
5.18

26
 Asia Top Ten Petroleum Importer 2010

Source: ITC Value in Million US$

Sr. %age
# Country Value in 2010 Share
World 2,112,303.03 100.00

Asia Aggregation 777,550.45 36.81

1 Japan 174,268.26 8.25

2 China 169,998.07 8.05

3 Republic of Korea 109,474.86 5.18

4 Singapore 81,099.76 3.84

5 Chinese Taipei 44,772.37 2.12

6 Thailand 30,152.01 1.43

7 Indonesia 27,491.56 1.30

8 Turkey 23,403.90 1.11

9 India 18,901.01 0.89

10 Hong Kong, China 15,738.46 0.75

27
 %age Share of Asia Top Ten Petroleum Importer 2010

Source: ITC Value in Million US $

India 0.89
Hong Kong,
Turkey 1.11
China 0.75
Indonesia 1.3
Thailand 1.43
Japan 8.25
Chinese
Taipei 2.12

Singapore 3.84

China 8.05
Republic of Korea
5.18

28
Petroleum Products exported by Pakistan till to 2010

Source: Trade map US $ ‘000’

Products Code Petroleum Value in 2008 Value in 2009 Value in 2010

Products
Light petroleum
'271019 distillates nes 1,120,370 707,092 1,194,773
Bituminous or oil shale
'271410 and tar sands 0 1,379 3,307

'271011 Aviation spirit 28,137 2,572 1,799

'271320 Petroleum bitumen 490 2,678 1,646

Tar distilled from coal,
lignite or peat & other
'270600 mineral tars etc 56 115 283
Mineral waxes nes and
similar products
obtained by synthesis
'271290 etc 39 1 186
Bitumen and asphalt;
asphaltites and
'271490 asphaltic rocks 22 345 126
Residues of petroleum
oils/of oils obtaind from
'271390 bitumin minerals nes 19 63 41
Bituminous mixtures
based on natural
'271500 asphalt etc 0 17 21
Petroleum gases and
other gaseous
hydrocarbons nes,
'271119 liquefied 2,818 0 5
Paraffin wax containing
by weight less than
'271220 0.75% of oil 2 38 5
Petroleum oils and
'271099 products nes 21 0 3
Petroleum gases and
other gaseous
hydrocarbons nes, in
'271129 gaseous state 2 15 2

'271111 Natural gas, liquefied 137 0 1

'271210 Petroleum jelly 0 0 1

'270710 Benzole 0 0 0

'270740 Naphthalene 77,384 0 0

Aromatic hydrocarbon
'270750 mixtures etcnes 0 0 0
Oils&oth products of
the distillation of high
'270799 temp coal tar etcnes 0 0 0
'270810 Pitch 67 0 0
Petroleum oils and oils
obtained from
bituminous minerals,
'270900 crude 0 0 0
Heavy furnace oil
(heating or motor fuel)
'271091 <1% sulphur 0 0 0

Natural gas in gaseous

'271121 state 0 0 0

29
 Major Refineries of Pakistan and Their Capacity

Currently there are about five major refineries operating in Pakistan, which are
explained below

1. Pak. Arab Refinery (PARCO) with refining capacity of 4.50 MTO (2005-06)

2. Attock Refinery (ARL) with refining capacity of 1.80 MTO (2005-06)

3. National Refinery (NRL) with refining capacity of 2.70 MTO (2005-06)

4. Bosicor Pakistan Limited (BPL) with refining capacity of 1.50 MTO (2005-06)

5.Pakistan Refinery Limited (PRL) with refining capacity of 2.20 MTO (2005-06)

6.Dhodak Refinery Limited (DRL) with refining capacity of 0.12 MTO (2005-06)

Proposed Advisory Committee for Petroleum Products

Members from:

 Ministry of Petroleum & Natural Resources (Development & Policy Wings)

 Pakistan Petroleum Ltd.

 Oil & Gas Development Company

 Pakistan State Oil

 Pakistan Shell

 Hydro Carbon Development Institute of Pakistan

 Pakistan Oil Refinery

 Attock Oil Refinery

 Pak Arab Oil Refinery

 BYCO Oil Refinery

30
 Top Oil Consuming Countries in the World about 87 bbl each day

Consuming (1000 (1000 population bbl/year per m3/year per

Nation 2008 bbl/day) m3/day) in millions capita capita
United
19,497.95 3,099.9 314 22.6 3.59
States
China 7,831.00 1,245.0 1345 2.1 0.33
Japan 4,784.85 760.7 127 13.7 2.18
India 2,962.00 470.9 1198 0.9 0.14
Russia 2,916.00 463.6 140 7.6 1.21
Germany 2,569.28 408.5 82 11.4 1.81
Brazil 2,485.00 395.1 193 4.7 0.75
Saudi
Arabia 2,376.00 377.8 25 33.7 5.36
(OPEC)
Canada 2,261.36 359.5 33 24.6 3.91
South
2,174.91 345.8 48 16.4 2.61
Korea
Mexico 2,128.46 338.4 109 7.1 1.13
France 1,986.26 315.8 62 11.6 1.84
Iran
1,741.00 276.8 74 8.6 1.37
(OPEC)
United
1,709.66 271.8 61 10.1 1.61
Kingdom
Italy 1,639.01 260.6 60 10 1.6

31
 Top Oil Producing Countries of the World

Producing 103bbl/d 103bbl/d 103bbl/d 103bbl/d Present

S.NO.
Nation (2006) (2007) (2008) (2009) Share
Saudi Arabia
1 10,665 10,234 10,782 9,760 11.8%
(OPEC)
2 Canada 3,288 3,358 3,350 3,294 4.0%
3 Russia 9,677 9,876 9,789 9,934 12.0%
4 United States 8,331 8,481 8,514 9,141 11.1%
5 Iran (OPEC) 4,148 4,043 4,174 4,177 5.1%
6 China 3,846 3,901 3,973 3,996 4.8%
7 Canada 3,288 3,358 3,350 3,294 4.0%
8 Mexico 3,707 3,501 3,185 3,001 3.6%
United Arab
9 Emirates 2,945 2,948 3,046 2,795 3.4%
(OPEC)
Kuwait
10 2,675 2,613 2,742 2,496 3.0%
(OPEC)
Venezuela
11 2,803 2,667 2,643 2,471 3.0%
(OPEC)
12 Norway 2,786 2,565 2,466 2,350 2.8%
13 Brazil 2,166 2,279 2,401 2,577 3.1%
14 Iraq (OPEC) 2,008 2,094 2,385 2,400 2.9%
Algeria
15 2,122 2,173 2,179 2,126 2.6%
(OPEC)
Nigeria
16 2,443 2,352 2,169 2,211 2.7%
(OPEC)
Angola
17 1,435 1,769 2,014 1,948 2.4%
(OPEC)
Libya
18 1,809 1,845 1,875 1,789 2.2%
(OPEC)
United
19 1,689 1,690 1,584 1,422 1.7%
Kingdom
20 Kazakhstan 1,388 1,445 1,429 1,540 1.9%

32
 Qatar
21 1,141 1,136 1,207 1,213 1.5%
(OPEC)
22 Indonesia 1,102 1,044 1,051 1,023 1.2%
23 India 854 881 884 877 1.1%
24 Azerbaijan 648 850 875 1,012 1.2%
25 Argentina 802 791 792 794 1.0%
26 Oman 743 714 761 816 1.0%
27 Malaysia 729 703 727 693 0.8%
28 Egypt 667 664 631 678 0.8%
29 Colombia 544 543 601 686 0.8%
30 Australia 552 595 586 588 0.7%
Ecuador
31 536 512 505 485 0.6%
(OPEC)
32 Sudan 380 466 480 486 0.6%
33 Syria 449 446 426 400 0.5%
Equatorial
34 386 400 359 346 0.4%
Guinea
35 Thailand 334 349 361 339 0.4%
36 Vietnam 362 352 314 346 0.4%
37 Yemen 377 361 300 287 0.3%
38 Denmark 344 314 289 262 0.3%
39 Gabon 237 244 248 242 0.3%
40 South Africa 204 199 195 192 0.2%
41 Turkmenistan No data 180 189 198 0.2%

33
 Top Oil Exporting Countries of the World

Exporting 103bbl/d 103m3/d 103bbl/d 103m3/d

S.NO.
Nation (2009) (2009) (2006) (2006)
Saudi
1 Arabia 7,322 1,164 8,651 1,376
(OPEC)
2 Russia 7,194 1,144 6,565 1,044
Iran
3 2,486 395 2,519 401
(OPEC)
United
Arab
4 2,303 366 2,515 400
Emirates
(OPEC)
5 Norway 2,132 339 2,542 404
Kuwait
6 2,124 338 2,150 342
(OPEC)
Nigeria
7 1,939 308 2,146 341
(OPEC)
Angola
8 1,878 299 1,363 217
(OPEC)
Algeria
9 1,767 281 1,847 297
(OPEC)
Iraq
10 1,764 280 1,438 229
(OPEC)
Venezuela
11 1,748 278 2,203 350
(OPEC)
Libya
12 1,525 242 1,525 242
(OPEC)
13 Kazakhstan 1,299 207 1,114 177
14 Canada 1,168 187 1,071 170
Qatar
15 1,066 169
(OPEC)
16 Mexico 1,039 165 1,676 266

34
 World's Largest Refineries (minimum capacity of 400,000 b/cd)

Rank Company Location Crude

Capacity,
barrels
per
calendar
day (b/cd)

1. Paraguana Refining Cardon/Judibana, Falcon, 940,000

Center Venezuela

2. SK Corp. Ulsan, South Korea 817,000

3. GS Caltex Corp. Yeosu, South Korea 750,000

4. Reliance Petroleum Ltd. Jamnagar, India 660,000

5. ExxonMobil Refining & Jurong/Pulau Ayer Chawan, 605,000

Supply Co. Singapore

6. Reliance Industries Ltd. Jamnagar, India 580,000

7. S-Oil Corp. Onsan, South Korea 565,000

8. ExxonMobil Refining & Baytown, Texas, USA 560,500

Supply Co.

9. Saudi Arabian Oil Co. RasTanura, Saudi Arabia 550,000

(Saudi Aramco)

10. Formosa Petrochemical Mailiao, Taiwan 540,000

Co.

11. ExxonMobil Refining & Baton Rouge, Louisiana, USA 503,500

Supply Co.

12. Hovensa LLC St. Croix, Virgin Islands, USA 500,000

35
13. Kuwait National Mina Al-Ahmadi, Kuwait 466,000
Petroleum Co.

14. Shell Eastern Petroleum Pulau, Bukom, Singapore 462,000

(Pte) Ltd.

15. BP PLC Texas City, Texas, USA 451,250

16. Citgo Petroleum Corp. Lake Charles, Louisiana, USA 440,000

17. Marathon Petroleum Co. Garyville, Louisiana, USA 436,000

LLC

18. Shell Pernis, Netherlands 404,000

NederlandRaffinaderij
B.V.

19. Sinopec Zhenhai, China 403,000

20. Saudi Arabian Oil Co. Rabigh, Saudi Arabia 400,000

(Saudi Aramco)

21. Saudi Aramco-Mobil Yanbu, Saudi Arabia 400,000

Source: Oil & Gas Journal,Dec, 2010.

36
 Top Ten Asian Refining Companies
Crude Capacity,
barrels per
calendar day
Rank Company No. Refineries (b/cd)*

1. Sinopec (China) 27 3,971,000

2. CNPC (China) 25 2,615,000

3. ExxonMobil (USA) 10 1,937,500

4. JX Nippon Oil & Energy Corp. 7 1,423,200

(Japan)

5. Royal Dutch Shell PLC (NL/UK) 13 1,324,875

6. Indian Oil Co. Ltd. (India) 11 1,274,293

7. Reliance Petroleum Ltd. (India) 2 1,240,000

8. Pertamina (Indonesia) 8 1,011,825

9. SK Corp. (South Korea) 1 817,000

10. Chinese Petroleum Corp. (CPC, 3 770,000

Taiwan)

Source: Oil & Gas Journal, Dec 6,2010.

37
Process Plants Resume in Pakistan (OGDC)

Design/Installed
Plants Products Start-up Date
Capacity
Qadirpur Gas Sales Gas 235 MMSCFD 1995
Processing Plant – gas Condensate 300 BPD
sweetening through Sales Gas 500 MMSCFD 2004
membrane technology. Condensate
Sales Gas
Condensate 2009
Phase-I 900 BPD

Phase-II 600 MMSCFD

900 BPD
Phase-III
Uch Gas Processing Sales Gas 250 MMSCFD 1999
Plant Gas Sweetening
though MDEA process
having low heating value
gas
Dhodak Gas Dehydrated Gas 20 MMSCFD 2010
Dehydration, unit

Dakhni Gas / Sales Gas 25 MMSCFD 1989

Condensate
Processing Plant Condensate 1760 BPD
LPG 26 MT/D 2008
Gas sweetening through Sulphur 67 MT/D
Amine process, LPG
and Sulphur Recovery Sales Gas 50 MMSCFD
Unit

Gas Dehydration unit –

train II
Bobi Gas / Condensate Sales Gas 16 MMSCFD 2004
Processing Plant - gas LPG 120 MT/D
dehydration, LPG Condensate 2762 BPD
recovery and
condensate stabilization
Kunnar Gas / Re-injection Gas* 10 MMSCFD 1999
Condensate LPG 41 MT/D
Processing Plant - gas Condensate 3880 BPD
dehydration, LPG
recovery and
condensate stabilization
Chanda Gas / Sales Gas 19 MMSCFD 2004
Condensate LPG 54 MT/D
Processing Plant - gas Condensate 5300 BPD
dehydration, LPG
recovery and
condensate stabilization

38
NandPur Gas Sales Gas 50 MMSCFD 2005
Dehydration Plant
Sadqal Gas Sales Gas 40 MMSCFD 2nd quarter of 1992
Dehydration Plant
Pakhro Membrane Sales Gas 10 MMSCFD 2010
Plant
Hundi Sari Gas Sales Gas 20 MMSCFD 1975
Dehydration/
Compression Plant
Mela Gas Sales Gas 30 MMSCFD 2007
Dehydration Plant Condensate 7000 BPD
Nashpa Gas Sales Gas 50 MMSCFD 2010
Dehydration Plant Condensate 6000 BPD
Sheikhan Gas Dehydrated Gas 100 2010
Dehydration Plant

39
New Locations of Oil reserves in Pakistan

Halini well Mianwali Punjab

Ziarat well Balochistan
Koonj well –sukkur
Sujawal well Sindh
Kark well on KPK border area
Sangur well and Kirk new oil reserves
Miano Gas field
Sawan Gas Field
Kandhkot Gas oil field
Block 2669-3 LATIF
Block 2668-4 Gambat
Marmazia Discovery
Makori East Discovery
Tolang Discovery

40
Activities Comprising on Exploration and Development by
OGDC.

 31 wells spudded, comprising 13 exploratory / appraisal and 18

development wells

 Two new exploration blocks (Eastern Offshore Indus – A and Shaan) were
added to OGDCL’s
 existing blocks during FY 2008

 Five new discoveries namely Moolan-1, Moolan N-1, Pasakhi E-1, Pakhro-
1 and Dhodak Deep-1
 were made in FY2008. In July 2008, another discovery, Kunnar S-1 was
made. Initial testing results
 from these discovery wells produced a cumulative 1,150 bpd of crude oil,
593 bpd of condensate and
 46 MMscfd of gas

 2,889 Linear Kms of 2D seismic survey and 1,067 Sq. Kms of 3D seismic
survey completed during
 FY2008.

 All Eight phases of the OGDCL financed Basin Study have been
completed and the phase-wise
 reports are being finalized. Reports on Phases I, II, and III are complete
and we expect that Fugro
 Robertson will finalize the report on the remaining phases (Phase IV to
VIII) by the end of current year
 2008.

 Annual Turn Around (ATA) was completed at Qadirpur, Uch, Dakhni,

Kunnar, Bobi and Dhodak fields
 as part of scheduled annual maintenance.

41
 Pakistan’s Top Petroleum Products Exporters
S.No. Pakistan’s top petroleum products exporters (PRAL data 2008-09) Value in US $ ‘000’
1 157,070,351
SHELL PAKISTAN LTD

2 PAKISTAN STATE OIL CO LTD 129,878,851

3 ATTOCK REFINERY LTD 112,782,176

4 PAKISTAN REFINERY LIMITED. 92,177,848

5 ATTOCK PETROLEUM LTD 81,360,036

6 NATIONAL REFINERY LTD 76,031,629
7 BOSICAR PAKISTAN LTD 72,868,139
8 JAMSHORO JOINT VENTURE LIMITED 17,771,301

9 JAN FILLING STATION

7,716,574

10 ADMORE GAS (PRIVATE) LIMITED 4,210,955

11 M AL-NOOR ENTERPRISES IMPORT & EXPORT G.O SUPPLR 3,544,928

12 CHEVRON PAKISTAN LIMITED 2,235,659

13 NAWAZ PETROLEUM 706,432

14 TUFAIL FILLING STATION 586,057

15 ISLAM LUBRICANTS (PVT) LTD 416,156

16 ZAHOOR CORPORATION CLEARING FORWARDING AGY 347,653

17 ABBAS & SONS 251,605

18 AFZAL MULTINATIONAL TRADING CO 224,336

19 AUTOMOBILE CORPORATION OF PAKISTAN (PVT) LTD 187,600

20 TOTAL ATLAS LUBRICANTS PAK LTD 106,529

21 MALIK IMTIAZ KHAN & CO 91,713

42
S.No. Pakistan’s top petroleum products exporters (PRAL data 2008-09) Value in US $ ‘000’

22 SHINWARI ENTP&IRFANULLAH&BROS&STAR FILLING 90,417

STATION
23 OVERSEAS OIL TRADING CO. (PRIVATE) LIMITED 70,120

24 TOTAL PARCO PAKISTAN LIMITED 54,800

25 HAYAT ULLAH & CO 2,300

26 MUSTAFA ENTERPRISES 2,300

27 M/S HAJI MAHMOOD HAJI ESSA & CO 9,546

28 FAUJI FERTILIZERS BIN QASIM LIMITED 7,222

29 SHINWARI TRADING COMPANY 3,577

30 M/S FREIGHT LINKERS/SKYLARK ENTERPRISES 1,881

31 RESEARCH & DEVELOPMENT ENGINEERING COMPANY 778

32 MUHAMMAD HUSSAIN 757

33 M/S MANSOOR AHMED & COMPANY 692

34 A.A KHAN & CO 600

35 F.A.INTERNATIONAL 397

36 AL NOOR GEMS CO235 235

37 IMRAN BROTHERS 203

38 RIAZ ENTERPRISES 53

39 KALI KO TRADERS 35

40 CLARIANT PAKISTAN LTD 8

43
SUGGETION/RECOMMENDATION AND ACTION PLAN OF PETROLEUM

 Pakistan is located in the Petroleum bearing area of the region i.e.

adjacent to Iran and as such exploration in the country is to be carried
out at War Scale.

 Oil exploration Organizations of Pakistan (e.g. OGDC , PPL ) should

be technically strengthened at par with foreign companies .

 Petroleum policy should be revised giving more incentives to foreign oil

companies to carry out exploration in Pakistan.

 Coastal areas of Pakistan also show prospects of Oil reserves and as

such off shore drilling Program is to be planned on priority .

44
SUGGETION/RECOMMENDATION AND ACTION PLAN OF PETROLEUM

 Presently there are 05 Oil Processing Facilities (Indus Refinery Ltd.,

Pakistan Oil Refinery, Pak-Arab Oil Refinery, Attock Oil Refinery and
Khalifa Coastal Refinery) with the total refining capacity of 270,000
Barrels per day with largest capacity of refining of 95000 Barrels per
day of Pak Arab Refinery. However, in order to accelerate the export of
Petroleum Products a substantial increase in the refining capacity is
essential.

 With the commissioning of two big oil refinery plants within 6 to 18

months with combined processing capacity of 220,000 barrel per day,
there will an increase more than 80 percent of the country’s existing
refinery capacity. These are BYCO’s 120,000 barrel per day and Trans
Asia’s 100,000 barrel per day processing plant.

 MMD is in contact with all the major Production & Marketing

stakeholders of Petroleum & Petroleum Products in the country. To this
effect an advisory committee exclusively for this sector is being
constituted to chalk out a plan for enhancement of export by taking all
the stakeholders on board.

45
 Conclusion

Pakistan has recently begun exporting a range of quality petroleum products

which includes Light petroleum Distillatesnes, Aviation sprit, Bituminous and Tar
sands,Petroleum gases and other gaseous, naphtha, lamp oil and white spirit
residual fuel oil, lubricating oils and greases, toluene and xylene.

The response from foreign buyers has been so encouraging as to give a further
boost to local production. Pakistan refineries produce petroleum products under
strict quality that conform to international standards.

It is very important to enhance the investment with foreign Oil

Companies/Refineries in the Upstream and Downstream Sectors for the rapid
development in Petroleum Products exports of the sector.

Activities should be increased in Exploration and Production in Offshore and

Onshore areas of Pakistan.

46
GLOSSARY OF TERMS USED IN THE PETROLEUM INDUSTRY

Bcf:
Billion cubic feet. Measures petroleum.
B/D:
Barrels per Day. Usually used to quantify a refiner's output capacity or an
oilfield’s rate of flow.
Bitumen:
Heavy oil or petroleum in semi-solid or solid forms.
Block:
Applies to an area of land - main subdivision used for exploration and production
acreage.
Blowouts:
Uncontrolled releases of fluids, solids, or gases.
Bunker C Fuel Oil:
Heavy fuel used for ships. Generally refers to a No. 6 grade of. residual fuel oil
which has had limited refining.

Casing:
Lining drilled hole with steel pipe. The pipe is cemented in place to prevent the
hole caving in.

Casinghead Gas:
Gas present in an oil well that is removed when it flows to the surface at the
well's casing.
Centrifugal pump:
A rotating pump, like a large screw, used for pushing large volumes of oil and
gas through pipelines.

47
CF/D:
Cubic feet per day. Usually used to quantify the rate of flow of a gas well or
pipeline.
Christmas tree:
The arrangement of pipes and valves at the wellhead which controls the flow of
oil and gas and prevents blowouts.
Completion
The final installation of permanent equipment for the production of oil or gas.
Compressor station:
Stations located every 60-80 km along gas pipeline which recompress gas to
ensure an even flow.
Concession:
A defined license area granted to a company for the exploration of oil and/or gas
under specific terms and conditions for a fixed period of time.
Conventional crude:
Liquid petroleum that is capable of flowing naturally without any processing.
Crown lands:
Government owned properties.
Crude Oil:
Amixture of hydrocarbons that exists as a liquid in natural underground reservoirs
and remains liquid at atmospheric pressure after passing through surface
separating facilities. Crude is the raw material which is refined into gasoline,
heating oil, jet fuel, propane, petrochemicals, and other products.
Cubic foot:
The amount of gas required to fill a volume of one cubic foot.
Cubic feet per day (cffd):
The number of cubic feet of natural gas produced from a well over a 24 hour
period, normally an average figure from longer period of time.

48
Cushion Gas:
The amount of gas required in a storage pool to maintain sufficient pressure to
keep the working gas moving so it can be recovered.
Daisy chain:
Term refers to the "chain" of linked sales and transfers by which cargo of oil or
oil products is sold many times before being delivered to the customer.
Density:
The gravity of crude oil. Density is measured in kilograms of large, carbon-rich
molecules per cubic metre or degrees on the American Petroleum Institute (API)
gravity scale.
Development Well
A well drilled within the proved area of an oil or gas reservoir down far enough to
reach the layers of rock which are known to produce petroleum products.
Diesel Fuel:
Distillate fuel oil used in compression-ignition engines. It is similar to home
heating oil, but must meet a cetane number specification of 40 or more.
Downstream sector:
Refers to all of the linked businesses which refine and market petroleum
including pipeline systems, refineries, gas distribution, and petrochemical
companies.

Drill string:
Steel pipes roughly 10m long joined together to form single pipe from the drill bit
to the drilling platform. It is rotated during drilling and is also the conduit for the
drilling mud.
Dry gas:
Gas containing no water vapor, same as lean gas.
Dry hole:
An unsuccessful well, drilled without finding commercial quantities of oil or gas.

49
Gas cap:
In field containing both gas and oil, some gas will often collect at the top of the
reservoir in a single deposit known as gas cap.

Gas field:
Afield or group of reservoirs of hydrocarbons containing natural gas but
insignificant quantities of oil.

Gasoline, Straight-Run:
Also known as raw gasoline. Gasoline which is obtained directly from crude oil by
fractional distillation. Straight-run gasoline generally must be upgraded to meet
current motor fuel specifications.
Gathering lines:
Pipelines that move petroleum from wells to processing or transmission facilities.
Geophones:
Sensors used in seismic surveys capable of detecting the velocity of energy
waves.
Gross:
Used to refer to acres or wells, refers to the total acres or wells in which a
company, individual, trust, or foundation has working interest.
Heating Oil:
No. 2fuel oil, a distillate fuel oil used either for domestic heating or in moderate
capacity commercial-industrial burners.

Hydrocarbon:
Any compound or mix of compounds, solid, liquid or gas, comprised of carbon
and hydrogen (e.g., coal, crude oil, and natural gas).

50
Infill drilling:
Drilling more wells into the same pool so that oil does not have to travel as far
through the rock.
Injection well:
A well used for injecting fluids into a formation in an attempt to increase force the
petroleum out of the rock more efficiently.

Jet Fuel:
Kerosene-type; high-quality kerosene product used primarily as fuel for
commercial turbojet and turboprop aircraft engines.

Joint venture:
An investment undertaken by consortium, usually with one member acting as the
operator.
Liquified natural gas (LNG):
Natural gas that has been liquified for ease of transport by cooling the gas to -
162-C. Natural gas has 600 times the volume of LNG.
Liquefied Petroleum Gas (LPG):
Propane, butane, or propane-butane mixtures derived from crude oil refining or
natural gas fractionation. For convenience of transportation, these gases are
liquefied through pressurization.

Major
A term broadly applied to those multinational oil companies ' which by virtue of
size, age, or degree of integration are among the preeminent companies in the
international petroleum industry.

51
Natural Gas:
A naturally occurring mixture of hydrocarbon and non- hydrocarbon gases found
in porous rock formations. Its principal component is methane.

Netback:
The amount of money a company receives per barrel of oil equivalent produced,
after subtracting operating costs, royalties, and general and administrative costs.
Net debt:
Long-term debt plus working capital.

Non-associated Gas:
Natural gas in a reservoir which contains no crude oil.
Net production:
Petroleum production that is owned by a company, individual, trust, or
foundation, less royalties and production due others.

Oil
Crude oil or condensate.
Oil in place:
The estimation of the real amount of oil in a reservoir.
OPEC:
Organization of Petroleum Exporting Countries.
Permeability:
The capacity of a reservoir rock to transmit fluids.
Petrochemical:
An intermediate chemical derived from petroleum, hydrocarbon liquids, or natural
gas, such as ethylene, propylene, benzene, toluene, and xylene.
Petroleum:
A natural mixture of hydrocarbons in gaseous, liquid, or solid form.

52
Pinnacle reef:
A conical formation in the subsurface rocks where hydrocarbons may be trapped.

Pipeline:
A pipe through which oil or natural gas is pumped between two points, either
offshore or onshore.

Pool:
A natural underground reservoir that either contains or appears to contain
petroleum.

Porosity:
The amount of open space within a rock, similar to a sponge.
Possible reserves:
An estimate of possible oil and/or gas reserves based on geological and
engineering data from undrilled or untested areas.

Rich gas:
Gas which is predominately methane but with a relatively high proportion of other
hydrocarbons.
Royalty holiday:
Some juridisdictions or regulators grant royalty free wells in certain situations. For
instance, In Alberta, the first 70,000 boe produced from a horizontal well are
generally royalty fee.
Solution gas:
Natural gas which is dissolved in the crude oil withjn the reservoir.
Spot market:
An international market in which oil or oil products are traded for immediate
delivery at the current price.

53
Transmission pipeline:
A network of pipelines distributing any petroleum product from a station, via
compressor stations, to storage centres or distribution points.
Nitization:
Owners of adjoining properties pool reserves together to form a single producing
unit in which each has an interest.
Upstream: In the daisy chain of petroleum production, all the activities that occur
from exploration through to production of raw product at the wellhead.
Wellhead:
The control equipment fitted to the top of the well consisting of outlets, valves
blowout preventors, etc.
Wet Gas:
Natural gas containing condensable hydrocarbons.
Wildcat:
A well drilled in an unexplored area.
Working capital:
Current assets minus current liabilities, shows a company's ability to meet its
short-term obligations.
Workovers:
Major repairs or modifications which restore or enhance production from a well.
Crude Oil Conversion

1 Barrel = 117.347 liters

1 Gallon = 4.546 Liters
1 Metric tone (1000kgs) = 7.3 barrels
1 Metric tone crude Oil = 7.3 barrels
1 Barrel [Oil] = 42 Gallons

Source: Texas A & M University and the valued assistance of Dr.AT Anderson
Napa California.

54
References:

1. Organizations:
Oil and Gas Development corporation ltd.
Oil Companies Advisory Committee Pakistan
Ministry of Petroleum and Natural Resources Pakistan
PakistanState Oil
Geological Survey of Pakistan (GSP)
Research Analysis Directorate, TDAP
Pakistan Mineral Development Corporation (PMDC)
Federal Bureau of statistics (FBS)
Pakistan Revenue Automation Limited (PRAL)
Glossary:TaxasA&MUniversity,Dr.AD Anderson NapaCalifornia.

2. Books & Journals:

Pakistan Energy Year Book-2006-2007
Oil and Gas Journal Dec,6,2010
Minerals & Rocks for Industry by Zaki Ahmad &Razi Ahmad Siddiqui issued by Geological Survey
of Pakistan, Quetta
Mineral statistics of Pakistan by Nazrul Islam, Syed Anwar Hussain, Syed Qamar Abbas &
Muhammad Ashraf issued by Geological Survey of Pakistan
Geological Bulletin by University of Peshawar
Journal of Himalayan Earth Sciences 39 (2006) page 55-59 by Irshad Ahmad1 and Noor Jehan,
Department of Environmental Sciences, University of Peshawar
Dana's System of Mineralogy, (6th edition), Page 678-680.

2. Websites:
www.ogdcl.com
www.pso.pk.com
www.trademap.com
www.ciafactbook
www.en.wikipedia.org/wiki/soapstone
www.ima-eu.org/en/talcwhat.html
www.ima-na.org/talc
www.usgs.gov
http://pubs.usgs.gov
www.luznac.com
www.haichenco.com
www.bisnetindia.com;
www.golcha.com;
www.mineral.galleries.com;
www.wwmag.net
www.gsp.gov.pk
www.pmdc.gov.pk

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